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HomeMy WebLinkAbout1979-015NO 79-15 ORDINANCE AUTHORIZING THE ISSUANCE OF WATER AND SEWER SYSTEM REVENUE BONDS THE STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON WHEREAS, the bonds hereinafter authorized were lawfully and favorably voted at an election duly held in said City on MAY 16, 1972, and WHEREAS, out of the bonds voted at said election, the following previously have been issued and delivered $3,475,000 out of a voted total of $5,275,000, for the purpose of improving and extending the City's Waterworks System, represented by part of the Series 1972 Bonds, part of the Series 1974 Bonds, and part of the Series 1977 Bonds, and $ 525,000 out of a voted total of $5,725,000, for the purpose of improving and extending the City's Sewer System, represented by part of the Series 1972 Bonds, part of the Series 1974 Bonds, and part of the Series 1977 Bonds, and WHEREAS, the bonds hereinafter authorized and designated were voted and are to be issued and delivered pursuant to Vernon's Articles 1111 through 1118 THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS Section 1 That the said City's bonds are hereby author- ized to be issued in the aggregate principal amount of $4,000,000 for the purpose of providing $1,000,000 FOR IMPROVING AND EX- TENDING THE CITY'S WATERWORKS SYSTEM, and providing $3,000,000 FOR IMPROVING AND EXTENDING THE CITY'S SEWER SYSTEM Section 2 That said bonds shall be designated as the "CITY OF DENTON WATER AND SEWER SYSTEM REVENUE BONDS, SERIES 1979" Section 3 That said bonds shall be dated MARCH 15, 1979, shall be in the denomination of $5,000 each, shall be number- ed consecutively from one upward, and shall mature serially on the maturity date, in each of the years, and in the amounts, respectively, as set forth in the following schedule MATURITY DATE JULY 15 YEARS AMOUNTS YEARS AMOUNTS 1981 $100,000 1991 $225,000 1982 100,000 1992 225,000 1983 100,000 1993 225,000 1984 100,000 1994 225,000 1985 225,000 1995 225,000 1986 225,000 1996 225,000 1987 225,000 1997 225,000 1988 225,000 1998 225,000 1989 225,000 1999 225,000 1990 225,000 2000 225,000 -1- Section 4 That the bonds scheduled to mature during the years, respectively, set forth below shall bear interest at the following rates per annum maturities 1981, 7S 8 maturities 1991, 5.3o % maturities 1982, 4 7s-% maturities 1992, s Sto % maturities 1983, (`% maturities 1993, s Yo 8 maturities 1984, % maturities 1994, S YD % maturities 1985, G.VS% maturities 1995, S ,ro % maturities 1986, 75% maturities 1996, C &0 8 maturities 1987, 4.7f % maturities 1997, S 7S % maturities 1988, 6,(p% maturities 1998, s.,s 8 maturities 1989, yr ro% maturities 1999, !4,75 % maturities 1990, 5-308 maturities 2000, f % Said interest shall be evidenced by interest coupons which shall appertain to said bonds, and which shall be payable in the manner provided and on the dates stated in the FORM OF BOND set forth in this Ordinance Section 5 That said bonds and interest coupons shall be issued, shall be payable, may be redeemed prior to their schedul- ed maturities, shall have the characteristics, and shall be sign- ed and executed (and said bonds shall be sealed), all as provid- ed, and in the manner indicated, in the FORM OF BOND set forth in this Ordinance Section 6 That the form of said bonds, including the form of Registration Certificate of the Comptroller of Public Accounts of the State of Texas to be printed and endorsed on each of said bonds, and the form of the aforesaid interest cou- pons which shall appertain and be attached initially to each of said bonds, shall be, respectively, substantially as follows NO FORM OF BOND UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON WATER AND SEWER SYSTEM REVENUE BOND SERIES 1979 $5,000 ON JULY 15, , THE CITY OF DENTON, in Denton County, Texas, hereby promises to pay to bearer hereof the principal amount of FIVE THOUSAND DOLLARS and to pay interest thereon, from date hereof, at the rate of per annum, evidenced by interest coupons payable JULY 15, 1and semiannually thereafter while this bond is outstand- ing THE PRINCIPAL of this bond and the interest coupons apper- taining hereto shall be payable to bearer, in lawful money of the United States of America, without exchange or collection charges to the bearer, upon presentation and surrender of this bond or proper interest coupon, at the following, which shall constitute and be defined as the "Paying Agent" for this Series of Bonds -2- �9-15 CITIBANK, N A , NEW YORK, NEW YORK, OR, AT THE OPTION OF THE BEARER, AT FIRST NATIONAL BANK IN DALLAS, DALLAS, TEXAS THIS BOND is one of a Series dated as of MARCH 15, 1979, authorized, issued, and delivered in the principal amount of $4,000,000 for the purpose of providing $1,000,000 FOR IMPROV- ING AND EXTENDING THE CITY'S WATERWORKS SYSTEM, and providing $3,000,000 FOR IMPROVING AND EXTENDING THE CITY'S SEWER SYSTEM ON JULY 15, 1992, or on any interest payment date thereafter, any outstanding bonds of this Series may be redeemed prior to their scheduled maturi- ties, at the option of said City, in whole, or in part, for the principal amount thereof and accrued interest thereon to the date fixed for redemption At least thirty days prior to the date fixed for any such redemption said City shall cause a written notice of such redemption to be published at least once in a fi- nancial publication published in the City of New York, New York By the date fixed for any such redemption due provision shall be made with the "Paying Agent" for the payment of the principal amount of the bonds which are to be so redeemed and accrued in- terest thereon to the date fixed for redemption If such writ- ten notice of redemption is published and if due provision for such payment is made, all as provided above, the bonds which are to be so redeemed thereby automatically shall be redeemed prior to their scheduled maturities, and they shall not bear interest after the date fixed for redemption, and they shall not be re- garded as being outstanding except for the right of the bearer to receive the redemption price from the "Paying Agent" out of the funds provided for such payment IT IS HEREBY certified and covenanted that this bond has been duly and validly authorized, issued, and delivered, that all acts, conditions, and things required or proper to be performed, exist, and be done precedent to or in the authorization, issuance, and delivery of this bond have been performed, existed, and been done in accordance with law, that this bond is a special obligation, and that the principal of and interest on this bond, together with other revenue bonds of said City, are payable from, and secured by a first lien on and pledge of, the Net Revenues of said City's Waterworks and Sewer System SAID CITY has reserved the right, subject to the restrictions stated, and adopted by reference, in the Ordinance authorizing this Series of bonds, to issue additional parity revenue bonds which also may be made payable from, and secured by a first lien on and pledge of, the aforesaid Net Revenues THE HOLDER HEREOF shall never have the right to demand pay- ment of this obligation out of any funds raised or to be raised by taxation IN WITNESS WHEREOF, this bond and the interest coupons apper- taining hereto have been signed with the facsimile signature of the Mayor of said City and countersigned with the facsimile signa- ture of the City Secretary of said City, and the official seal of said City has been duly impressed, or placed in facsimile, on this bond xxxxxxxx City Secretary xxxxxxxx Mayor -3- 79-1s FORM OF REGISTRATION CERTIFICATE COMPTROLLER'S REGISTRATION CERTIFICATE REGISTER NO I hereby certify that this bond has been examined, certi- fied as to validity, and approved by the Attorney General of the State of Texas, and that this bond has been registered by the Comptroller of Public Accounts of the State of Texas NO Witness my signature and seal this xxxxxxxx Comptroller or Public Accounts o the State of Texas FORM OF INTEREST COUPON ON 15, , THE CITY OF DENTON, in the County of Denton, State of Texas, promises to pay to bearer the amount shown on this interest coupon, in lawful money of the United States of America, with- out exchange or collection charges to the bearer, unless due provision has been made for the redemption prior to scheduled maturity of the bond to which this interest coupon appertains, upon presentation and surrender of this interest coupon, at CITIBANK, N A , NEW YORK, NEW YORK, OR, AT THE OPTION OF THE BEARER, AT FIRST NATIONAL BANK IN DALLAS, DALLAS, TEXAS, said amount being interest coming due that day on the bond, bearing the number hereinafter designated, of that issue of CITY OF DENTON WATER AND SEWER SYSTEM REVENUE BONDS, SERIES 1979, DATED MARCH 15, 1979 The holder hereof shall never have the right to demand payment of this obligation out of any funds raised or to be raised by taxation Bond No xxxxxxxx xxxxxxxx City Secretary Mayor Section 7 (a) That the term "Outstanding Bonds," as herein- after used in this Ordinance, shall mean all of said City's pres- ently outstanding bonds which are payable from, and secured by a first lien on and pledge of, the Net Revenues of said City's Waterworks and Sewer System (b) That the bonds authorized hereby are parity "Additional Bonds" as defined in the ordinance passed on July 12, 1960, authorizing the issuance, sale, and delivery of said City's Water and Sewer System Revenue Bonds, Series 1960 (c) That Sections 9 through 25 of said ordinance are hereby adopted by reference and shall be applicable to the bonds au- thorized to be issued by this Ordinance for all purposes, except to the extent hereinafter specifically modified and supplemented The bonds authorized to be issued by this Ordinance and the Out- standing Bonds are and shall be on a parity and of equal dignity in all respects, and are and shall be payable from, and secured by a first lien on and pledge of, the Net Revenues of said City's Waterworks and Sewer System -4- '1 - / 5 Section 8 That, in addition to all other amounts requir- ed by the ordinances, respectively, authorizing the Outstanding Bonds, there shall be deposited into the Interest and Sinking Fund (created for the benefit of said Outstanding Bonds and all Additional Bonds), from the Net Revenues of the System, the following (a) such amounts, in equal monthly installments, made on or before the last day of each month hereafter, as will be sufficient to pay the interest scheduled to come due on said Series 1979 Bonds on the next interest payment date, and (b) such amounts, in equal monthly installments, made on or before the last day of each month hereafter, commencing in July, 1980, as will be sufficient to pay the next maturing prin- cipal of said Series 1979 Bonds Section 9 That the Reserve Fund heretofore created for the benefit of the Outstanding Bonds and all Additional Bonds now contains money and investments not less than the amount of $522,000 in market value On or before the last day of each month hereafter there shall be deposited into the Reserve Fund such amounts, in equal monthly installments, as will cause the Reserve Fund to contain, within five years after the date of the Series 1979 Bonds, an amount of money and investments equal in market value to the average annual principal and interest re- quirements on the Outstanding Bonds and the Series 1979 Bonds (the "Reserve Required Amount") Thereafter, no additional de- posits shall be made into the Reserve Fund as long as the money and investments therein are equal to the Reserve Required Amount, but if and whenever the Reserve Fund is reduced below the Reserve Required Amount, a monthly deposit shall be made, on or before the last day of each month thereafter, into the Reserve Fund from Net Revenues of the System (after the required deposits have been made into the Interest and Sinking Fund), in an amount equal to 1/60th of the Reserve Required Amount, until such time as the Reserve Fund has been restored to the Reserve Required Amount, and the City covenants to keep and maintain the Reserve Requirea Amount in the Reserve Fund in the manner described above The Reserve Fund shall be maintained, used, and may be invested, for the benefit of the Bonds and all Additional Bonds, in accordance with the procedures, as herein modified and supplemented, set forth in the ordinances, respectively, authorizing the Outstand- ing Bonds It is provided, however, that if and whenever, due to investment income or otherwise, the Reserve Fund contains an amount in excess of the Reserve Required Amount, such excess shall be deposited immediately to the credit of the Revenue Fund Section 10 That the bonds authorized by this Ordinance are and shall be special obligations of said City, and the holder or holders thereof shall never have the right to demand payment of said obligations out of any funds raised or to be raised by taxation Section 11 That the Mayor of said City is hereby author- ized to have control of said bonds and all necessary records and proceedings pertaining to said bonds pending their delivery and their investigation, examination, and approval by the Attorney General of the State of Texas, and their registration by the Comptroller of Public Accounts of the State of Texas Upon registration of said bonds, said Comptroller of Public Accounts (or a deputy designated in writing to act for said Comptroller) shall manually sign the Comptroller's Registration -5- 79 -1 5 Certificate printed and endorsed on each of said bonds, and the seal of said Comptroller shall be impressed, or placed in facsimile, on each of said bonds Section 12 That the City covenants to and with the pur- chaser of the bonds that it will make no use of the proceeds of the bonds at any time throughout the term of this issue of bonds which, if such use had been reasonably expected on the date of delivery of the bonds to and payment for the bonds by the purchasers, would have caused the bonds to be arbitrage bonds within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended, or any regulations or rulings pertaining thereto, and by this covenant the City is obligated to comply with the requirements of the aforesaid Section 103(c) and all applicable and pertinent Department of the Treasury regulations relating to arbitrage bonds The City further covenants that the proceeds of the bonds will not otherwise be used directly or in- directly so as to cause all or any part of the bonds to be or be- come arbitrage bonds within the meaning of the aforesaid Section 103(c), or any regulations or rulings pertaining thereto Section 13 That it is hereby officially found and deter- mined that a case of emergency or urgent public necessity exists which requires the holding of the meeting at which this Ordinance is passed, such emergency or urgent public necessity being that the proceeds from the sale of said bonds are required as soon as possible and without delay for necessary and urgently needed public improvements, and that said meeting was open to the public, and public notice of the time, place, and purpose of said meeting was given, all as required by Vernon's Ann Civ St Article 6252-17 Section 14 That the City Council officially finds, deter- mines, and declares that said bonds have been duly advertised for sale as required by the Home Rule Charter of said City, that sealed bids have been received at a public sale of said bonds held on March 6, 1979, that all of said bonds are hereby sold and shall be delivered to a syndicatteem,-anaged or headed by being the best bidder at public sale,'for h principal amount of said bonds, and accrued interest thereon to the date of delivery, plus a premium of $5 96..Q5 Section 15 It is further found and determined that the Official Notice of Sale for said bonds was duly published on February 1, 1979 in The Bond Buyer, New York, New York, which is a national publication regularly and primarily carrying fi- nancial news and municipal bond sale notices, and on January 31, 1979, in the Denton Record -Chronicle, which has been designated as the official newspaper of the City of Denton The form and substance of said Official Notice of Sale, and the aforesaid publications thereof, are hereby approved and ratified in all respects by the City Council Section 16 That it is hereby officially found, determin- ed, and declared that said bonds have been sold at public sale to the bidder offering the lowest interest cost, after receiving sealed bids pursuant to an Official Notice of Sale and Official Statement dated February 15, 1979, prepared and distributed in connection with the sale of said bonds Said Official Notice of Sale and Official Statement have been and are hereby approved by the City Council It is further officially found, determined, and declared that the statements and representations contained in said Official Notice of Sale and Official Statement are true and correct in all material respects, to the best knowledge and belief of the City Council -6- i y 15 CERTIFICATE FOR ORDINANCE AUTHORIZING ThE ISSUANCE OF WATER AND SEWER SYSTEM REVENUE BONDS THE STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON We, the undersigned officers of said City, hereby certify as follows 1 The City Council of said City convened in REGULAR MEETING ON THE 6TH DAY OF MARCH, 1979, at the Municipal Building (City Hall), and the roll was called of the duly constituted officers and members of said City Council, to -wit Brooks Holt, City Secretary Joe Mitchell, Mayor Bill Nash Mary Claude Gay, Mayor Pro Tem Elinor Hughes Dick Stewart and all of said ersons were present, except the following absentees thus constituting a qiXorum. Whereupon, among other business, the following was transacted at said Meeting a written ORDINANCE AUTHORIZING THE ISSUANCE OF WATER AND SEWER SYSTEM REVENUE BONDS was duly introduced for the consideration of said City Council and read in full It was then duly moved and seconded that said Ordinance be passed, and, after due discussion, said mo- tion, carrying with it the passage of said Ordinance, prevail- ed and carried by the following vote AYES All members of said City Council shown present above voted "Aye" NOES None 2 That a true, full, and correct copy of the aforesaid Ordinance passed at the Meeting described in the above and fore- going paragraph is attached to and follows this Certificate, that said Ordinance has been duly recorded in said City Council's minutes of said Meeting, that the above and foregoing paragraph is a true, full, and correct excerpt from said City Council's minutes of said Meeting pertaining to the passage of sa-d Ordi- nance, that the persons named in the above and foregoing para- graph are the duly chosen, qualified, and acting officers and members of said City Council as indicated therein, that each of the officers and members of said City Council was duly and suffi- ciently notified officially and personally, in advance, of the time, place, and purpose of the aforesaid Meeting, and that said Ordinance would be introduced and considered for passage at said Meeting, and each of said officers and members consented, in ad- vance, to the holding of said Meeting for such purpose, and that said Meeting was open to the public, and public notice of the time, place, and purpose of said meeting was given, all as re- quired by Vernon's Ann Civ St Article 6252-17 3 That the Mayor of said City has approved, and hereby approves, the aforesaid Ordinance, that the Mayor and the City Secretary of said City have duly signed said Ordinance, and that the Mayor and the City Secretary of said City hereby de- clare that their signing of this Certificate shall constitute the signing of the attached and following copy of said Ordinance for all purposes SIGNED AND SEALED the 6th day of March, 1979 City Secretary Mayor - - - - - - - - - - - - - - - - - - - - - - - - - - - - ZAL We, the undersigned, being respectively the City Attorney and the Bond Attorneys of the City of Denton, Texas, hereby cer- tify that we prepared and approved as to legality the attached and following Ordinance prior ,,�s passage as aforesaid